Carlo Ancelotti Sentenced to One-Year Jail Term in Spain for Tax Fraud

 

MADRID, Spain – July 10, 2025 – Carlo Ancelotti, the acclaimed manager of the Brazil national football team and a figure synonymous with footballing success, has been handed a one-year prison sentence by a Spanish court for tax fraud committed during his first spell as Real Madrid coach in 2014. The verdict, delivered yesterday, also includes a fine of €386,000 ($452,187).

Spanish prosecutors had sought a more severe punishment, including a prison sentence of up to four years and nine months, accusing the Italian of defrauding the state of approximately €1 million ($1 million) in 2014 and 2015. The core of the prosecution's case centered on Ancelotti's alleged use of shell companies, including one in the Virgin Islands, to conceal earnings from his image rights.

While the sentence carries a prison term, legal experts widely anticipate that Ancelotti will not serve actual jail time. Under Spanish law, first-time offenders for non-violent crimes, particularly those with sentences under two years, often have their prison terms suspended. This precedent has been set by numerous other high-profile football figures, including Lionel Messi and Cristiano Ronaldo, who also faced similar tax fraud convictions in Spain but avoided incarceration.

Ancelotti, who celebrated his 67th birthday today, maintained his innocence during his court appearances, stating he never intended to defraud the tax authorities. He testified that he was unaware that the arrangements for managing his image rights, which were handled by his financial advisors, would lead to an underpayment of taxes. He further claimed to have believed such practices were common among players and coaches at the time. Ancelotti reportedly settled the outstanding debt in December 2021.

The court, however, found a "conscious desire to evade the payment of taxes" through "artificial mechanisms" regarding his image rights for the 2014 fiscal year. Interestingly, the fraud charge for the 2015 tax year was dismissed, as the court could not definitively prove his tax residency in Spain for that period, given his move to London after leaving Real Madrid in May 2015.

This ruling adds Carlo Ancelotti to a growing list of prominent football personalities who have faced the scrutiny of Spanish tax authorities. The Spanish government has been proactive in cracking down on alleged tax evasion within the sporting world, signaling a clear message that even highly successful individuals are not exempt from legal obligations.

For now, Ancelotti's focus remains on his role as Brazil's national team coach, a position he took up after his second successful stint with Real Madrid. While the legal proceedings in Spain have concluded with a conviction, the footballing world expects to see the legendary coach continue to lead the Seleção from the sidelines, with the understanding that a financial penalty rather than a prison cell awaits him.